You have been given the following data for the Fairfax Company: sales last month were 44,000 units; total dollar sales last month were $282,000; last month's total variable expenses were $231,240, and for last
month the fixed expenses were $36,900.
Required:
1. What is the company's contribution margin (CM) ratio?
%
2. Estimate the change in the company's net operating income if it were to increase its total sales by $1,300.